Manufacturers expect stability in late 2002

Survey of Minnesota manufacturers

Even as the nation's general economic doldrums continue, Minnesota manufacturers
said they anticipate stable conditions during the second half of 2002,
according to a survey of state manufacturers by the Minnesota Department
of Employment and Economic Development (DEED) and the Federal Reserve
Bank of Minneapolis.

The survey, conducted in August and September, found that most manufacturers
expected orders, production level, investment and employment to either
increase or stay the same during the second half. Although most said they
foresee little change in most indicators before the end of this year,
the percent expecting declines in these indicators remained largely unchanged
from the last survey conducted in April.

While manufacturers show some signs of optimism within their businesses,
they're less sanguine about the out look for the state's broader economic
health. The survey revealed pessimism about consumer spending, economic
growth and corporate profitswith 47 percent expecting corporate
profits to decrease over the last six months of 2002.

MINNESOTA MANUFACTURING BUSINESS SURVEY
Compared with the first half of 2002, during the next six
months what do you expect from your business?

Sources: Minnesota Department
of Employment and Economic Development and
Federal Reserve Bank of Minneapolis

"This survey tends to support the conclusions
of a similar manufacturing survey last April, which indicated that Minnesota
manufacturers have seen better days," said DEED's Analysis and
Evaluation Director Bob Isaacson. "I think we can conclude from
this new survey that our manufacturers are experiencing a gradual return
to economic health, but that most remain cautious about predicting a
quick economic turnaround."